Selling pressure was observed at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 index lost nearly 400 points during trading on Monday.
At 1:40pm, the benchmark index was hovering at 78,425.44, a decrease of 385.05 points or 0.49%.
Selling was witnessed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and pharmaceuticals.
Index-heavy stocks including OGDC, PPL, PSO, SHEL, MCB and MEBL were in the red.
The PSX witnessed a bullish trend during the previous two-day trading week, and has gained since the budget announcement that did not put forward any negative taxation proposals.
“The market is likely to remain range-bound in the near term,” said Intermarket Securities Limited in a note on Monday.
“The next milestone for the market is the passing of the budget in parliament now that the Pakistan’s Peoples Party (PPP) has seemingly held back its concerns. This will pave way for recommencement of talks with the International Monetary Fund (IMF) for a new programme,” it added.
The brokerage house was of the view that the initiation of a new military operation against militants in the country, Azm-estehkam, is a positive step. “Potentially better security conditions will bode well for FDI and market perception among foreign investors,” it added.
Globally, Asia shares slipped on Monday in a countdown for US price data that investors are banking on to show a renewed moderation in inflation, while markets were on alert for possible Japanese intervention as the dollar tested the 160 yen barrier.
Geopolitics also loomed large, with the first US presidential debate on Thursday and the first round of voting in the French election at the weekend.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9%, after touching a two-year top last week. South Korean stocks fell 0.8%.
This is an intra-day update
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